I just read an article about divorce rates. For first-time marriages, the rate was about 50%. That’s pretty high although it’s in line with other studies I have seen.
But I was surprised to learn that approximately 67% of second marriages end in divorce.
Divorce can cause financial hardship. Even more so for couples going through a second or third divorce.
In recent years, portfolios have shrunk and house values tanked. Incomes are down and job prospects bleak.
It might very well be that a spouse on another marriage has little left over. This is especially true if they are paying alimony or child support as part of prior divorce.
Not to mention there is probably less opportunity in the future to acquire substantial assets.
With the lousy financial climate, it is crucial to protect what you have accumulated.
Prenuptial and post-nuptial agreements reduce marital strife and bypass costly divorce litigation. That’s why I counsel folks that regardless of assets, income and status these agreements are a cost effective way to provide finality in the event of a divorce.
For second marriages, a prenup or postnup is even more essential.